Legal & Regulatory

Almost half of U.S. states now insist that their investor-owned electric utilities serve a specified percentage of their load with electricity from renewable resources by a date certain. Utilities struggling to comply with their mandate increasingly warn that they will be unable to achieve the required level on time. Yet even as utilities express these […]

The financing of power generation projects increasingly depends on the execution of a long-term power-purchase agreement (PPA). A common prerequisite for considering a PPA to be "effective" is a "final and nonappealable" regulatory order approving it. Purchasing utilities justifiably insist on such certainty to immunize their PPAs from after-the-fact regulatory scrutiny and possible penalty. Unfortunately, […]

U.S. demand for natural gas is projected to increase by more than 50% by 2020. Companies are building—and the public is opposing—receiving terminals on three coasts that would increase imports of liquefied natural gas. The pros and cons of "opening up" Alaska, coastal waters, and federal lands to drilling are still being debated. These politically […]

  What’s in a name? Plenty, if the word is "renewable." Intuitively, most people outside the energy industry consider hydroelectric power "renewable." The dictionary defines the word as follows: "capable of being replaced by natural ecological cycles." Accordingly, rainwater should indisputably qualify as renewable. Yet since the early days of renewable portfolio objectives, most hydro […]

Most sponsors of bid solicitations seek to attract the maximum number of high-quality bids. Basic economic principles tell us that the greater the number of respondents to a solicitation, the greater the competition and the greater the benefits to the solicitor. Somewhat counterintuitively, and notwithstanding California’s need for more electricity supply, the state’s utilities are […]

The length of term allowed for power sales contracts is a critical determinant of the ability of states to meet their increasingly ambitious renewable power targets. Many utilities advocate limiting terms to 10 or perhaps 15 years for renewable energy contracts, emphasizing the "flexibility" that shorter terms offer. In contrast, contract terms of 20 or […]

  More than 20 states now require their investor-owned utilities to serve a certain percentage of their load with renewable energy by a date certain. Other states are considering following suit. Failure to meet its "renewable power" mandate can subject a utility to financial and other regulatory penalties. If structured and supervised correctly, these initiatives […]

      Steven F. Greenwald and Christopher A. Hilen Utility regulators in California and other states have begun subjecting power plants to extensive oversight of their O&M activities. These oversight programs are a response to allegations that generators purposely shut operational plants down to drive electricity prices up during the 2000–2001 energy crisis. These state initiatives […]

The U.S. needs new generating capacity in coming decades to meet growing electricity demand. The increasing scarcity of land within utility load centers, combined with environmental opposition to the siting of plants, often limits siting options to remote locations. Restricting power plants to distant sites necessitates additional transmission facilities, increases delivery costs and electric bills, […]

The Combined Cycle Users’ Group (CCUG) was formed to address issues of importance to users, particularly the interactions among the major systems of combined-cycle power plants: the steam turbine, combustion turbine(s), and heat-recovery steam generator. The added value of becoming a CCUG member is the opportunity to interact with other operators, as well as designers, […]